Thank you for sharing!

Your article was successfully shared with the contacts you provided.

CAMP HILL, PA-Rite Aid Corp. has obtained rent concessions in 20% of its worst-performing units, executives said at the company’s second quarter conference call.

The company contracted with a national real estate firm to assist with negotiations on 465 underperforming stores, and also is considering closures, said Frank G. Vitrano, senior executive vp and CFO. An in-house team is working on an additional 230 units. The rent reductions will be fully achieved over five to six years.

“We continue to work with our landlord partners to arrive at a satisfactory outcome on the remaining locations,” Vitrano said.

The company will open 18 new stores and relocate 42 units in 2010, compared with 33 new and 56 relocated units in 2009. Thus far this year, the company has closed 102 stores, and plans 117 store closures in fiscal 2010.

Rite-Aid does not plan any major market exits, but didn’t rule them out, either.

“Anything we did would be opportunistic at this point,” said John T. Standley, president and COO. “Our real objective today is to take those kind of markets in those kind of stores and see what we can do with them.”

Sales for second quarter were $6.3 billion, down 2.7% from the prior-year second quarter. Same-store sales for the quarter decreased 1.1%. The company posted a net loss of $116 million vs. a net loss of $222 million for the year-ago quarter.

Rite Aid operates 4,800 stores in 31 states and the District of Columbia.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.